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The following questions are representative of the types of questions you will find on the CRCM (Certified Regulatory Compliance Manager) exam.

1.   A borrower has a right to rescind a loan agreement in all of the following situations except:

a.) A line of credit used for the borrower's business, secured by the borrower's primary  dwelling
b.) A revolving line of credit secured by the borrower's primary dwelling used to improve the borrower's home
c.) An increase of a line of credit from $5,000 to $10,000 secured by the borrower's primary dwelling
d.) A loan to pay off a contract for a deed secured by the borrower's primary dwelling

2.  Compliance monitoring has revealed customers who are consistently writing more than six checks per month on their money market deposit account. To comply with Regulation D, which of the following actions should you advise the business take?

a.) Advise customers to open a second money market account so they can write six  checks per month on each account.
b.) Implement a service charge to penalize customers for each withdrawal that exceeds the maximum of three per month.
c.) Notify the customers that writing more than six checks per month may result in account closure or conversion to a non-interest-bearing account.
d.) Allow customers to continue writing more than three checks per month, but prohibit pre-authorized transfers.

3.   The primary responsibility for managing a bank’s inherent compliance risk should lie with which of the following?

a.) Internal audit
b.) Consumers
c.) The business
d.) Compliance officer

4.   A branch manager finds an unexplained $7,000 cash shortage in Teller #1's cash drawer. Which of the following actions must the bank take?

a.) File a Currency Transaction Report (CTR) with the IRS
b.) Discharge Teller #1 immediately
c.) Send a notice of adverse action to the bank's federal regulator
d.) File a Suspicious Activity Report (SAR)

5.  Which of the following bases is the most acceptable method of delineating a bank's CRA assessment area(s)?

a.) Existing boundaries such as MSAs or counties in which the bank's office(s) is(are) located
b.) The bank's effective lending territory (i.e., where it makes a substantial portion of its loans)
c.) The zip codes that are included within a radius of the bank's office(s)
d.) The area(s) assigned by the bank's primary regulator

Answer Key

1. a
2. c
3. c
4. d
5. b